03:50:28 EDT Sun 31 May 2020
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Desert Mountain Energy Corp
Symbol DME
Shares Issued 36,645,051
Close 2019-04-16 C$ 0.15
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Desert Mountain testing for helium at Kight Gilcrease

2019-04-16 11:51 ET - News Release

Mr. Irwin Olian reports


Desert Mountain Energy Corp. is now conducting geological studies and gas sampling to determine the helium potential of its Kight Gilcrease sand unit oil and gas project in Seminole county, Oklahoma. The KGSU is situated in an area of Oklahoma which has been host to numerous helium bearing gas wells, with commercial production grades typically ranging from 0.6 per cent to 1.4 per cent helium.

While the KGSU remains a strong target for enhanced secondary water-flood production of oil, management believes the property also offers good potential for helium production. The Booch, Senora and Earlsboro sands, from 2,160 feet to 2,728 feet, are regarded as highly prospective with a dense lime or anhydrite cap and close proximity to known or indicated fault structures. The company is presently testing gas from existing wells on site to determine the presence of helium. Commercial viability will ultimately depend upon grade, pressure and size of any helium reservoir. Results are expected shortly.

Targeting work and permitting are continuing at the company's Heliopolis helium project in Arizona's Holbrook basin, with good progress to date. Heliopolis remains the company's flagship project and management is looking forward to its upcoming drill program to test three targets in different areas in the basin.

By way of background, the KGSU was permitted and approved by Oklahoma Corporation Commission by Order No. 375263 dated July 19, 1993, as an enhanced oil recovery project primarily utilizing water-flood secondary recovery operations, in an administrative proceeding which consolidated and unitized all working and royalty interests in the project. The KGSU has had historic production estimated at 1,690,240 barrels of oil by the OCC and presently has seven wells on site, one of which is operational. The oil produced is a light sweet crude that varies from 34 American Petroleum Institute gravity to 43 API gravity.

The KGSU comprises an area of approximately 883.7 acres, which is substantially underlain by the Gilcrease sandstone common source of oil supply. The KGSU leases are located eight miles south of Wewoka directly astride State Highway 56, in a portion of the south/two of section 6, all of section seven and the northwest/four of section 18, T6N R8E Seminole county, Oklahoma. It is not located within an environmentally sensitive area or on a known Native American reservation. The oil-bearing pay zone was estimated by the OCC to be from 10 feet to 40 feet in width and to occur at a subsurface depth of approximately 2,726 feet to 2,810 feet, as reflected in geophysical logs from the Adams No. 1 Maverick well drilled in the southwest/four southeast/four southwest/four of section 7-6N-8E, Seminole county.

According to Irwin Olian, chief executive officer of the company: "Whilst we have been advancing our Heliopolis project in Arizona as quickly as possible and look forward to drilling in the coming months, we saw an opportunity to increase shareholder values by examining the helium potential of our Kight Gilcrease property in Oklahoma. Accordingly, we are now testing wells on that property for helium content and are optimistic about the potential."

About Desert Mountain Energy Corp.

Desert Mountain Energy is an exploratory resource company engaged in exploration and development of helium, oil and gas, and mineral properties in the southwestern United States. Until Sept. 5, 2018, the company also owned the Yellowjacket gold project in Atlin, B.C., which it had been developing. The company has its executive offices in Vancouver, B.C. The company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd.

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